TxDOT's 2026 Spending Plan Includes Nearly $400M for IT

The Texas Department of Transportation’s (TxDOT) 2026-2027 funding plan includes major investments in information technology, with nearly $400 million allocated to projects aimed at modernizing legacy systems, enhancing cybersecurity and improving connected infrastructure across the state.

TxDOT’s biennial technology budget totals $394 million and supports a multiyear effort to replace outdated IT systems with modern platforms that can handle increasing demands from Texas’ fast-growing population and transportation needs. These funds will facilitate improvements across portfolio and project management, right-of-way operations and contract letting systems that support thousands of highway projects each year.

As part of its capital program, TxDOT will continue expanding its IT network to accommodate new systems and data workloads, while implementing safeguards to protect end-user devices. These upgrades include deploying connected infrastructure to collect and report on traffic patterns as part of an effort to improve congestion management and road safety through real-time data.

Cybersecurity remains a central priority for the agency. TxDOT’s ongoing enhancements to its cybersecurity program are designed to address a shifting threat landscape, with funds supporting risk mitigation and improved system protections.

In addition to direct IT investments, the agency received $286 million for capital improvements that include constructing and rehabilitating buildings across its network of more than 2,800 facilities statewide. About $203 million of IT capital funding will also support embedded IT infrastructure and technology upgrades tied to site modernization, security and operational capabilities.

TxDOT’s funding approach reflects a broader shift toward data-driven transportation planning. Through its 10-year Unified Transportation Program, the agency applies fiscally conservative forecasting and long-range project planning that increasingly rely on digital tools for project selection, scheduling and delivery.

These investments come as TxDOT faces rising costs and economic pressures, including a 67 percent increase in the Highway Cost Index over the past four years. Even as federal reimbursements and voter-approved revenue sources such as Proposition 1 and Proposition 7 continue to support core transportation programs, TxDOT is leveraging IT modernization to deliver projects more efficiently and manage funding volatility.

With about $40 billion appropriated for the 2026-2027 biennium, of which $35.4 billion is directed toward highway project development and maintenance, the inclusion of robust technology funding highlights the state’s focus on integrating IT into the future of infrastructure planning and delivery.

A recent agencywide push to operationalize artificial intelligence across TxDOT, spanning automated invoice processing, traffic incident detection and generative AI tools, further reflects a broader digital transformation strategy designed to modernize internal operations and transportation systems across the state.